According to Reuters, Stanley Works is offering Black & Decker shareholders $3.46 billion in stock, coming out to 1.275 shares of Stanley common stock for each share of Black & Decker. Stanley chief John Lundgren will be CEO of the combined company, and Black & Decker’s head Nolan Archibald will act as chairman.

Cravath, Swaine & Moore handled negotiations for Stanley, led by managing partner Robert Townsend. The Cravath team also included partners Mark Greene, Eric Hilfers, Elizabeth Grayer, Katherine Forrest and Michael Schler. Townsend did not respond to a request for comment.

Lawyers from Hogan & Hartson and Miles & Stockbridge represented Black & Decker, according to a jointly issued press release. Partner Glenn Campbell led Hogan's team, which included partners Elizabeth Donley, Henry Kahn, William Neff, Scott Reisch, Lynda Marshall, and Catriona Hatton. Campbell did not respond to a request for comment.

The Miles team included partners Christopher Johnson, Robert Cattaneo and Thomas St. Ville. Hogan handled the dealmaking aided by Miles' long history with Black & Decker, Johnson says. Miles has handled Black & Decker's corporate work since the company's founding nearly 70 years ago.

"Hogan was probably lead on the transaction side, but with our extensive knowledge of the company, we were there shoulder-to-shoulder," Johnson says.

The deal is contingent on approvals from the companies’ shareholders and government competition regulators. In their statement, the companies say they don't foresee antitrust hurdles because Black & Decker makes power tools and Stanley makes hand tools.

As noted by The New York Times, Stanley and Black & Decker have talked about merging for nearly three decades. Black & Decker’s CEO told the Times now is the time because they can save $350 million immediately--no small sum in a struggling economy.

Executives told the Times the majority of cost savings will come from a reduction in corporate overhead and consolidation of business units.